This also raises concern that how big an organisation should be. In case the organisation has increased beyond critical size, the touch points of the organisations needs to be properly monitored else it may lead to excessive risk taking by managers.

What seems to be shameful is that despite the education and the experience, most financial wizards didnt show any common sense.Its one thing own a nail gun and quite another to shoot yourself with it. Complex financial instruments please the gut no end with their endless possibilities and apparent infallibility - something that most neutral economists sensed.It is now incumbent on the regulators to make a prudent call as to whether they want to saddle the survivors with white elephants or let the fittest survive. Pain is inevitable either ways

Capitalism will be outdated sooner or later. I think it will be sooner than you like. Why?The endless greed pursuing of the unlimited wealth. The problem is not to be or becoming a millionaire - billionaire - trillionaire. The problem is too many us want to be or becoming a millionaire - billionaire - trillionaireThe problem is too many of people committed crime in doing so. The already millionaires - billionaires - trillionaire all know in their heart if everyone of us in this world is like them becoming them, human race will die out very quickly if not overnight. Why well-off is not enough? Why people want so many mansions expensive cars, personal material belongs that they don't even touch or know? Why do we need to own everything in the world? Does money really buy us happiness?Obviously to capitalism money is the only happiness. The sport of aggressive money making robbing others and the society makes them the happiest men in the world because that prove they are very sexy and manly. Who can stop them? The government may be. But they are the government it seems because they put their people on the bench.Or the people who are left much worse off have to do that eventually? The government must intervene put a cap / limit on such unlimited individual wealth accumulation. You have the ability to own the world doesn't mean you have the right to do so Because this world does not all belong to you, it belong to all us, including the little people who just want to be well-off.

Your points are correct. I hear a great number of our recent immigrants are returning to eastern and central Europe, as it is difficult to get unemployment benefits without two years work and the economies in Eastern Europe have matured somewhat. I'm not sure this is a good thing though, as I think it may lead to a further contraction in our economy. But it is a good sign that Europe's labour force is becoming more mobile.I'm very surprised your taking this so cooly. Almost every asset class became overpriced by the carry trade and public and private debt. I was given a scholarship to a business school three years ago, there was several discussions with lecturers about the unprecedented 'glut of liquidity'. 'There's a sick amount of money out there.' was the common refrain. Everyone knew it was going to end in the biggest crash ever. It was so obvious, I didn't see the point in graduating.I hope you well, but my brother works for the Bank of England, they think AIG will go under and then the credit card companies. 7 trillion in credit card debt. I'm watching the Dollar, I don't believe any, nor should you, any declared reserve currency holdings.

The government has 9.5 trillion deficit, increasing 500 biilion per year and seems like it is getting worse every day.

California has 17.2 billion deficit and still do not have a budget yet.

Trade deficit is 700 billion dollar and getting worse too.

Average credit card has $7,000 balance and increasing.

U.S. spends 16% GDP for health insurance and approximately 20% of people don't have health insurance.

75% of the economy is consumer spending. The spending money seems like coming from thin-air.

Social security might run out of money by 2035 or something like that.

The list goes on and on

This economy is really sttange. For example, very few people really produce things, very little manufacturing, all services. For example, seems like one pair of shoe made in China for 1 dollar, the advertising of that pair shoe costs 5 dollars, the store and saleperson made another 5 dollars, the brand name gets another 5 dollars of patent fee, the wholesaler gets another 5 dollar, and soon and so forth.....

There are too many lawyers, accountants, salesperson and bullshxt artists.

in light of nihilism,"American wealth creation for the forty years since WW2 was underpinned by a large number of high value European immigrants and the reserve currency. Your education system is broken."Really? It was Europe who helped build America since WWII? Are you sure it wasn't the other way around?Regardless, this credit crisis, will not fundamentally shift America's GDP to Europe, so I don't understand why you keep saying Europe, Europe, Europe. It seems oddly nationalistic.The important thing is setting up the market in the future, wherever it may be,to react better to cyclical contractions. I think this can be done in part by stabelizing the housing market. This is reminiscent of the S&L crisis, and has to do with ensuring risk is properly accounted for. The reason the housing market in America didn't shrink for 50 years was in part because of the baby boom and in part due to proper control (20% down payment). America needs to recognize that some markets are better off with less play more control. "Capitalism/Privatization" what it means in America, is not always the answer. Sometimes government regulation is useful. BTW, what will Ireland do with all their immigrants once they have an economic downturn?

Don't worry about me lev. d.,This weekend me and my buddies are going to pick magic mushrooms and trip out. I think this financial crash is a ball, I laughed myself to sleep last night. I'm laughing because I played an active part in creating it (see previous post) by ripping off credit card companies. Ireland's good fun, even though our economy is taking a battering from the recent turmoil in energy and financial markets. If the worst happens, we can replace our currency, the Euro, with the potato. Old school. I'll barter my laptop for a gun and a goat. As for our Social system, it's cheap and effective. It was constructed to take the fuel out of the republican guerrilla war. Poverty creates extremism. Theres no free nursing homes etc., basic needs are provided for.Anyway, I do worry about the people with families out there, especially in the U.S., too much blind progress by the market. It was going to hit a wall some day.Make no mistake, if this disgrace occurred in France there'd be a revolution tomorrow.

dear "light" and all the others on this page: why dont you cheer yourself up and join me in the "lights are going out in europe" fest? i obviously need to visit my local off-sale. but what the hell- i'm sure america has its own delinquiencies?!!!
"i dont know where we are going"(bloomberg) this quote sums up exactly the crass nature of the capitalist system- and the reason that it has to be replaced.

lehmann brother bankcrupty has led serious questions about effiency of the investement banks. by looking at the current scenario Investement banking is one of the riskiest business.It spoils the nation growth, Plunders hard earnent money of the tax payers just for the sake of getting quick profits!. Other Investment banks please take the Leaf out of the Lehmann Book and make sure that they amend their ways to avoid another downturn in the near future

Dear Ulrich,When I write 'the market is completely dislocated from the fabric of society'; I try to impress upon you the truth, that the market in the U.S. does not meet the basic needs of the population. A good basic education, a good basic health care system, basic housing etc. Example, A large number of the U.S. population has no health care. Health care in the U.S. is 15% of GDP.Health care in Ireland is 8% of GDP. The cover is universal. Every facet of the health care market is centrally planned to reduce cost and maximise return. So whats the problem?

Dear Ulrich,I apologise, I'm in Ireland, and our socialist system is constructed differently. We pay insurance when we work, insurance against redundancy. So unemployment ain't that bad. We have universal health care cover. Universal housing. Universal education, including third level. But there are always restrictions. So I shouldn't say they are universal. That said, our corporate tax is 12%, the average salaried single man pays 14% tax, less if he's married. One of the smallest governments in the industrialised world. One of the wealthiest Nations.Just because some markets are centrally planned, doesn't mean your a communist. Just because basic human needs are guaranteed , doesn't mean your not a capitalist.We have our way, and it works for us.I agree with you, that America's system of Social Security is unsustainable and very badly implemented.Still Laughing..

Dear lev. d.,In a previous post I described ripping off a lot of cash from credit card companies, around two years ago. I can only tell you what I know from my personal experience.The said companies, still haven't sold their debt or have tried to bring me to a civil court. They send me a dozen letters a week, with threats etc. A lot of home calls too. They used to send debt collectors to my parents home, but after my mother threatened to sue them for harassment they all stopped.The reason, as far as I can ascertain, is that if they sell my debt, or bring me to court, they have to write my account as a bad debt on their balance sheet.They don't want to do this. The credit card companies will be the next wave, probably near the end, just before the American economy completely collapses when the Dollar has no value.I'm still laughing,The Laughter of a Nihilist.

in light of nihilism:The market cannot be dislocated from America, unless you live as a hermit in a mountain. The market is made up of people like you and me. It is the government that is dislocated, it tries to win temporary popularity with voters with populist measures. So if you want to truly bring back the markets from to "fabric of society", do not let the government do it in the first place.If my statement is so absurd, please explain how exactly social security is going to pan out, if the future generation are not going to have pay who is ? That is the problem with all Utopian thinking, it has high mighty ideals and makes for inspirational wording, yet it ignores the most important factor, it does not deal with real people only idealized ones.

i would like to add this to the u.k. readers: what is the future of h.b.o.s.? and what is going to be the outcome of the �7trillion owed on CREDIT CARDS? do credit cards not matter anymore? can i get more credit? albeit for a carry-oot (drink)
the american bankers will be throwing themselves of the barrel of the bottle also! i'm not alone!

dear dineshk... mba's... the only reason world capitalism was able to expand, ARTIFICIALLY, was to artificially expand the market- beyond its meens- with credit. credit expanded the market. the bosses gained and the workers will lose.
workers unite!

Greed and self-interest will always dominate in so-called free market and capitalism. For those who think very highly of free market with minimum government interference, this is the n-th lessons. The previous lessons include the Latin America in the 80s, Long-term Capital in the 90s and the internet bubble last decade. The lesson is : they never learn enough from the lessons; greed just overtake it!

Dear Ulrich123,Wrote: "This nightmare came about because of government meddling in the first place, the less they get involved with this, the faster this problem will go away. Socialism for the rich or socialism for the poor is never a good idea, all it does it move the burden to future generations."This statement is absurd. A Socialist Government can collect revenues that are equal to its expenses. Thus no burden is, in the form of a National Debt, inherited by the unborn. Also, and I've said this in earlier posts, the market in America is completely dislocated from the fabric of society. America has forgotten why we form economic communities, why we produce and engage in surplus economic activity. It is so the members of any one economic community can produce material that meets all the basic needs of human life, (food, clothing, housing, medical care) and after this feat, direct any surplus economic strength toward enjoying the communities values.Get back to Basics.